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The Role of a Second Reservoir in an Open BCS Model

โœ Scribed by F. Bagarello

Publisher
World Scientific Publishing Company
Year
2005
Tongue
English
Weight
386 KB
Volume
12
Category
Article
ISSN
1230-1612

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## Abstract This paper develops a model of inflation targeting in a small open economy under floating exchange rates. The central bank follows a simple Taylor rule to achieve a target inflation rate, and the inflation process itself is determined by an expectations augmented Phillips curve mechanis